Human Resource Planning

For an organization, its most important asset is human resource and human resource planning is considered an important managerial function. The purpose of human resource planning is to ensure that the right type of people, in the right number are present at the right time and place. It also ensures that the human resource is properly trained and motivated to do the required work at a time when there seems to be a shortage of suitable and skilled personnel.

Human resource planning is important to an organization because of the internal and external changes taking place in the organization and outside of it. For instance, when we talk about internal changes, it includes how businesses are affected by employee turnover and employee retirements whereas external changes that have an impact on the organization include the changes in technology, in the economy of the country and in the industrial and consumer demands for skills that are not easily available within a company. The internal and external changes in an organization have a profound impact on the type and the number of employees that a business requires in order to remain successful.

The organization concerned will estimate its manpower requirements and then find out whether its need to hire internal and/or external staff and what sources should be used to hire such staff the company requires as if the staff is unavailable than the work and the company will suffer as a result. For instance, consider developing countries as an example. Developing countries are currently suffering from the shortage of skilled labor force, especially trained managers. Even though quite a few job opportunities are made available by the organization and quite a few are available in the industry, there seems to be a shortage of properly trained and available people. Developing countries quite often end up trying to import trained and skilled labor force but it is not as easy as it seems. Human resource planning makes humanization of the work environment easier.

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